Latest Ratios: P/E Ratio 26.2x · EV/EBITDA 21.3x · ROE 34.7%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.1B | $20.4B | $13.8B | $12.5B | $8.1B | $8.3B | $9.0B | $5.2B | $10.6B | $9.2B | $6.7B |
| Enterprise Value | $25.1B | $21.4B | $14.5B | $14.5B | $10.5B | $9.8B | $10.0B | $6.9B | $10.9B | $8.8B | $6.9B |
| P/E Ratio → | 26.16 | 21.70 | 18.58 | 19.32 | 15.39 | 13.86 | — | 13.65 | 24.61 | 56.75 | — |
| P/S Ratio | 2.97 | 2.52 | 1.95 | 1.88 | 1.25 | 1.34 | 2.04 | 0.85 | 1.68 | 1.49 | 1.01 |
| P/B Ratio | 8.67 | 7.19 | 5.33 | 5.10 | 3.31 | 3.28 | 3.45 | 1.95 | 3.22 | 2.67 | 2.05 |
| P/FCF | 32.32 | 27.37 | 13.55 | 13.80 | 41.60 | 15.16 | 32.88 | 10.84 | 18.08 | 11.34 | 10.10 |
| P/OCF | 20.89 | 17.69 | 11.18 | 11.67 | 19.59 | 11.62 | 23.57 | 6.96 | 13.52 | 9.46 | 7.09 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.64 | 2.06 | 2.19 | 1.64 | 1.58 | 2.28 | 1.11 | 1.73 | 1.42 | 1.04 |
| EV / EBITDA | 21.33 | 18.19 | 12.63 | 14.73 | 11.40 | 9.58 | 49.12 | 11.69 | 12.97 | 11.05 | 32.26 |
| EV / EBIT | 21.30 | 18.19 | 14.63 | 17.70 | 14.40 | 12.18 | — | 19.93 | 18.13 | 17.29 | — |
| EV / FCF | — | 28.71 | 14.28 | 16.04 | 54.48 | 17.94 | 36.69 | 14.16 | 18.66 | 10.78 | 10.39 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 69.9% | 69.9% | 68.6% | 66.8% | 64.7% | 66.7% | 65.0% | 59.3% | 61.6% | 60.7% | 54.9% |
| Operating Margin | 14.5% | 14.5% | 13.2% | 11.4% | 10.9% | 12.8% | -1.0% | 5.1% | 8.9% | 8.1% | -1.4% |
| Net Profit Margin | 11.6% | 11.6% | 10.5% | 9.7% | 8.1% | 9.7% | -2.8% | 6.2% | 6.8% | 2.6% | -1.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 34.7% | 34.7% | 29.5% | 26.5% | 21.0% | 23.3% | -4.6% | 12.9% | 12.8% | 4.8% | -2.8% |
| ROA | 14.0% | 14.0% | 10.9% | 9.7% | 7.2% | 7.7% | -1.6% | 5.8% | 7.1% | 2.8% | -1.7% |
| ROIC | 24.7% | 24.7% | 17.9% | 12.1% | 11.8% | 15.5% | -0.8% | 6.0% | 12.7% | 11.5% | -1.8% |
| ROCE | 24.8% | 24.8% | 18.6% | 14.5% | 13.1% | 13.6% | -0.8% | 6.4% | 12.1% | 11.0% | -1.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.05 | 1.05 | 1.03 | 1.51 | 1.66 | 1.34 | 1.39 | 1.20 | 0.28 | 0.25 | 0.26 |
| Debt / EBITDA | 2.54 | 2.54 | 2.32 | 3.74 | 4.35 | 3.30 | 17.75 | 5.50 | 1.10 | 1.07 | 4.00 |
| Net Debt / Equity | — | 0.35 | 0.29 | 0.83 | 1.03 | 0.60 | 0.40 | 0.60 | 0.10 | -0.13 | 0.06 |
| Net Debt / EBITDA | 0.85 | 0.85 | 0.65 | 2.05 | 2.70 | 1.49 | 5.11 | 2.74 | 0.40 | -0.57 | 0.90 |
| Debt / FCF | — | 1.34 | 0.73 | 2.24 | 12.88 | 2.78 | 3.81 | 3.32 | 0.58 | -0.56 | 0.29 |
| Interest Coverage | 21.73 | 21.73 | 22.56 | 19.42 | 18.13 | 14.97 | -0.54 | 19.55 | 29.14 | 27.88 | -7.46 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.10 | 2.10 | 1.78 | 2.29 | 2.23 | 1.87 | 2.66 | 1.61 | 3.00 | 2.24 | 2.55 |
| Quick Ratio | 1.55 | 1.55 | 1.33 | 1.68 | 1.51 | 1.44 | 2.18 | 1.26 | 2.31 | 1.76 | 1.86 |
| Cash Ratio | 1.12 | 1.12 | 0.98 | 1.22 | 1.05 | 1.15 | 1.75 | 1.01 | 1.66 | 1.26 | 1.17 |
| Asset Turnover | — | 1.26 | 1.00 | 1.00 | 0.95 | 0.81 | 0.56 | 0.85 | 1.06 | 1.01 | 1.18 |
| Inventory Turnover | 2.41 | 2.41 | 2.34 | 2.44 | 2.13 | 2.12 | 2.03 | 3.40 | 2.97 | 3.19 | 3.79 |
| Days Sales Outstanding | — | 22.12 | 31.57 | 30.88 | 32.84 | 31.86 | 47.43 | 24.61 | 35.10 | 38.48 | 36.97 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.1% | 1.5% | 1.6% | 2.5% | 1.8% | 0.6% | 3.9% | 1.8% | 1.8% | 2.4% |
| Payout Ratio | 23.0% | 23.0% | 27.1% | 30.1% | 37.9% | 25.0% | — | 53.1% | 44.3% | 99.8% | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 4.6% | 5.4% | 5.2% | 6.5% | 7.2% | — | 7.3% | 4.1% | 1.8% | — |
| FCF Yield | 3.1% | 3.7% | 7.4% | 7.2% | 2.4% | 6.6% | 3.0% | 9.2% | 5.5% | 8.8% | 9.9% |
| Buyback Yield | 2.6% | 3.1% | 3.5% | 3.6% | 6.1% | 5.9% | 0.4% | 13.2% | 4.7% | 0.2% | 3.2% |
| Total Shareholder Yield | 3.5% | 4.1% | 4.9% | 5.2% | 8.5% | 7.7% | 1.0% | 17.1% | 6.5% | 1.9% | 5.6% |
| Shares Outstanding | — | $62M | $64M | $67M | $69M | $74M | $74M | $77M | $82M | $83M | $83M |
Inventory Turnover Seasonality
Based on current market data, Ralph Lauren trades at a 27.21x TTM P/E ratio, suggesting that investors are pricing in the success of the brand elevation strategy relative to the more volatile and lower-multiple profiles of peers like PVH Corp and V.F. Corporation.
The current valuation appears to command a premium, likely reflecting the market's confidence in the company's shift toward direct-to-consumer channels and higher average unit retail prices. However, investors should monitor whether this multiple is sustainable if growth rates normalize, as the current forward P/E of 25.18 implies a high expectation for continued margin expansion.
As reported in recent financial statements, ROIC has fluctuated between 2.3% and 8.3% over the last ten quarters, indicating that Ralph Lauren's ability to compound capital is heavily tethered to the seasonal inventory cycles inherent in the premium apparel manufacturing business model.
The volatility in ROIC suggests that the company's capital efficiency is not yet fully optimized across all fiscal quarters, likely due to the significant working capital requirements during inventory build-up phases. While the peak returns are impressive, the lower-end figures warrant further investigation into whether the company is over-investing in inventory that may not yield immediate returns.
According to quarterly filings, the cash conversion cycle reached 116 days in 2026Q4, a figure that highlights the company's reliance on managing long inventory holding periods, which averaged 164 days, to maintain its high-margin brand positioning in the competitive consumer cyclical landscape.
The extended DIO suggests that Ralph Lauren prioritizes brand availability and depth over rapid inventory turnover, a strategy that supports its premium pricing but ties up significant capital. Analysts should monitor the DPO trend, as any contraction in supplier payment terms could place additional pressure on the company's liquidity during off-peak sales periods.
Based on the provided balance sheet data, the company maintained a current ratio of 2.10 as of 2026Q4, providing a robust liquidity cushion that appears sufficient to absorb the working capital volatility typical of the apparel industry's holiday-driven revenue concentration.
This liquidity position suggests a defensive posture that protects the company from short-term credit market disruptions, allowing for consistent capital allocation even when cash flow is temporarily negative. The quick ratio of 1.55 further confirms that the company is not overly dependent on immediate inventory liquidation to meet its short-term financial obligations.
The P/E ratio is frequently misapplied to Ralph Lauren because it obscures the impact of significant seasonal working capital swings and non-recurring licensing income, which can artificially inflate or deflate earnings quality in any given quarter compared to the company's long-term cash generation potential.
Investors should instead focus on EV/EBITDA or free cash flow yields, which better account for the company's capital structure and the cash-heavy nature of its retail operations. Relying solely on P/E may lead to an incomplete assessment of the company's true earning power, particularly during periods of aggressive inventory investment.
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Quick answers to the most common questions about buying RL stock.
Ralph Lauren Corporation's current P/E ratio is 26.2x. The historical average is 21.3x. This places it at the 93th percentile of its historical range.
Ralph Lauren Corporation's current EV/EBITDA is 21.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
Ralph Lauren Corporation's return on equity (ROE) is 34.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 17.7%.
Based on historical data, Ralph Lauren Corporation is trading at a P/E of 26.2x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ralph Lauren Corporation's current dividend yield is 0.88% with a payout ratio of 23.0%.
Ralph Lauren Corporation has 69.9% gross margin and 14.5% operating margin. Operating margin between 10-20% is typical for established companies.
Ralph Lauren Corporation's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.